Stock Value Chart
(based on Peter Lynch's method on valuing stocks)
This is the result of a script I wrote to value stocks in any given portfolio according to Peter Lynch's method for a stock's fair value. This method is as follows:
value rating = p/e ratio / growth rate + dividend yield
Let me know via email if you'd like me to run this for any other Yahoo Finance portfolios or any ticker symbols in particular!
How to read the results:
| value rating < 0 | No predictions on fair value since company's growth or PE is negative. |
| 0 < value rating <= 0.5 | Amazing! Stock is selling for less than or equal to half of what it's worth. |
| 0.5 < value rating <= 1 | Pretty good. The stock is selling for a bit less than what its worth. |
| value rating = 1 | Stock is exactly at a fair value. |
| 1 < value rating < 2 | Not great. The stock is selling for more than and up to double it's worth. |
| value rating > 2 | Way overpriced. |